Public transport will not be subsidized, clarifies Ecuador’s energy minister

He said the grant will go to the end consumer, students, or certain communities.

René Ortiz, Minister of Energy, pointed out that the Government does not have the mechanisms for subsidies ready because it considers that the price of the WTI will remain low in the coming months, and only at that moment will it be analyzed how to focus and which sectors will be classified as vulnerable.

He clarified that the targeting will not be generalized but directed to the end user. He exemplified in the case of public transport that he will not receive a subsidy, but the passengers will be the beneficiaries, such as students or certain communities.

Cautiously Ortiz mentioned that he cannot venture to say what will happen in 2022 or 2025 once the price of oil has recovered.

He indicated that a band system has been activated so that it does not strongly impact the consumer:

«Today there is no need to focus, the time will come to identify vulnerable groups, the time will come,» he said.

On the other hand, he indicated that the trading companies will set fuel prices according to the bands issued by the Government.

“The trading companies will establish their prices freely within the 5% band. The marketing actor can raise or lower pennies. «

He insisted that for the moment and during 2020 prices will be low: «The process will be slow in relation to the rise in prices.»